First, preheat your oven to 375°F (190°C). While it's heating up, lightly grease a standard 12-cup muffin tin. This step is crucial to prevent the crescent dough from sticking, ensuring your cupcakes pop out easily once they're baked and golden.
Place a large skillet over medium-high heat and add the ground beef. Cook until it's thoroughly browned, breaking it apart with a spoon as it cooks. Once browned, drain off any excess grease. Stir in the taco seasoning packet and the water, and let it simmer for a few minutes until the sauce has thickened.
Now it’s time to create the "cupcake" base. Unroll the crescent roll dough and separate it into triangles. Press one triangle into each cup of your prepared muffin tin, shaping the dough to form a small cup that covers the bottom and sides.
Spoon the seasoned ground beef mixture evenly into each of the dough cups. Don't be shy—fill them up generously! Once all the cups are filled with the beef, sprinkle a good amount of shredded cheddar cheese over the top of each one.
Place the muffin tin into your preheated oven. Bake for 12 to 15 minutes, or until the crescent dough is a beautiful golden brown and the cheese on top is melted, bubbly, and slightly browned. Keep a close eye on them to prevent the dough from burning.
Once baked, carefully remove the muffin tin from the oven and let the taco cupcakes cool for a few minutes. This allows them to set and makes them easier to handle. Once slightly cooled, add your favorite toppings like a dollop of sour cream, a sprinkle of cilantro, or some diced tomatoes before serving warm.